How to rearrange icons on springboard?

i have a ipod Touch 2g and its jailbroken. it runs on 2.2.1 firmware. When i delete an app, or move it to folders (via Categories) the icons on the springboard dont get re aligned. Meaning i have some 5 to 8 icons in one page..

Any idea how i could re-arrange these icons on springboard?

I searched the forum but couldnt find any help

thanks in advance

BTW i have KATE installed but dont know how to use it. In one of the thread it was mentioned that i could use KATE to rearrange the icons. its installed but i couldnt find it anywhere in the apps

Hold down on the app until it starts to wiggle. You can drag it around. I'm not sure if there's any other way to do it; I've heard kate causes some problems

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this is the answer that you are looking for, it lets you rearrange the springboard however you want, this has nothing to do with categories, if you want to move stuff on the springboard then hold your finger on the app and it'll wiggle and then you can move it wherever and hit home to stop the wiggling